The Substitution of Communication for Transportation—A Case Study

The possibilities of substituting communications for transportation in urban settings is investigated in a case study of an insurance company. An optimization model is developed for determining the number and location of sites to be selected, and the results of the optimization are used as part of a cost/benefit analysis. It is concluded that such substitution is economically, operationally, and technically feasible for the firm studied and that such substitution would be of benefit to many firms in the information industries. The model, the analysis and the implementation of the results are discussed.